The costs of settling foreign exchange trades have been severely cut by HSBC’s blockchain-based system, says executive at the bank.
Mark Williamson, COO at FX cash trading and risk management, who is in charge of this blockchain project, said that the HSBC FX Everywhere platform cut costs by 25%, compared to traditional methods.
Last month, HSBC announced that they had settle more than $250 billion in transactions via the new HSBC FX Everywhere platform. Over the course of last year, another 3 million foreign exchange transactions had been settled and 150,000 payments were made using the digital ledger.
In a recent Reuters report, Williamson claimed that 3,500 to 5,000 trades are processed every day on FX Everywhere.
We’re able to demonstrate that this is not a one-off proof of concept or just one or two trades.Mark Williamson, COO at FX cash trading and risk management
HSBC has been testing blockchain tech since 2015, when it joined the consortium startup R3 and teamed up with Bank of America and the Singapore government on the development of a supply chain trial.